Correlation Between Cloudpoint Technology and CSC Steel
Can any of the company-specific risk be diversified away by investing in both Cloudpoint Technology and CSC Steel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cloudpoint Technology and CSC Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cloudpoint Technology Berhad and CSC Steel Holdings, you can compare the effects of market volatilities on Cloudpoint Technology and CSC Steel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cloudpoint Technology with a short position of CSC Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloudpoint Technology and CSC Steel.
Diversification Opportunities for Cloudpoint Technology and CSC Steel
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cloudpoint and CSC is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cloudpoint Technology Berhad and CSC Steel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSC Steel Holdings and Cloudpoint Technology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cloudpoint Technology Berhad are associated (or correlated) with CSC Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSC Steel Holdings has no effect on the direction of Cloudpoint Technology i.e., Cloudpoint Technology and CSC Steel go up and down completely randomly.
Pair Corralation between Cloudpoint Technology and CSC Steel
Assuming the 90 days trading horizon Cloudpoint Technology Berhad is expected to generate 2.66 times more return on investment than CSC Steel. However, Cloudpoint Technology is 2.66 times more volatile than CSC Steel Holdings. It trades about 0.07 of its potential returns per unit of risk. CSC Steel Holdings is currently generating about 0.0 per unit of risk. If you would invest 85.00 in Cloudpoint Technology Berhad on October 9, 2024 and sell it today you would earn a total of 8.00 from holding Cloudpoint Technology Berhad or generate 9.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cloudpoint Technology Berhad vs. CSC Steel Holdings
Performance |
Timeline |
Cloudpoint Technology |
CSC Steel Holdings |
Cloudpoint Technology and CSC Steel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cloudpoint Technology and CSC Steel
The main advantage of trading using opposite Cloudpoint Technology and CSC Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloudpoint Technology position performs unexpectedly, CSC Steel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CSC Steel will offset losses from the drop in CSC Steel's long position.Cloudpoint Technology vs. Sungei Bagan Rubber | Cloudpoint Technology vs. Tex Cycle Technology | Cloudpoint Technology vs. Daya Materials Bhd | Cloudpoint Technology vs. Dufu Tech Corp |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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